White labeling is when one company buys its product from another company and rebrands it as their own. The company which sells the final product to the consumer is usually not involved in the manufacturing process.
White labeled products are often used in the electronics industry but can also be found in other industries. For example, some coffee bean companies also offer white-label coffee, which means they provide the coffee beans to another company, which then brands and sells them.
As a business that chooses to white label products, there are several reasons why this could be the best solution for you.
One of the main reasons to white label products is that it’s a cost-effective way to start a business. When you white label a product, you don’t have to worry about the upfront costs of developing, manufacturing and marketing a product, which can be a significant advantage, especially for small businesses.
According to Catherine Schwartz, Finance Editor of Crediful, "The biggest cost advantage of white labeling is that you don’t have to spend money on product development or marketing. Instead, you’re essentially piggybacking on the success of another company’s product, which means you can get your business up and running more quickly and with less overhead."
Another reason for white label products is that it can be much faster to get a white label product to market than developing your product from scratch. Again, this is because you’re not starting from scratch – the manufacturing process is already in place, and you’re just rebranding an existing product. So, if you’re looking to get a product to market quickly, white labeling can be a great option.
Michael Nemeroff, CEO & Co-Founder of Rush Order Tees, states, "The biggest advantage of white labeling is the time to market. When starting from scratch, it can take months – sometimes even years – to develop a product, find a manufacturer and get it to market. You can shortcut that process with white labeling and have a product on the market much sooner."
Starting your own business always comes with some risk, but if you white label products, you can mitigate some of that risk. Risk is mitigated because you’re not investing as much money into developing a new product.
So, if the product doesn’t succeed in the market, you’ve not lost as much money as you would have if you’d developed the product from scratch. Choose a white label product from a reputable company to mitigate your risk even more.
White label products also offer greater flexibility than developing your own product. For example, if you white label a product, you can still choose the packaging, branding and marketing.
This means you can tailor the product to your target market and create a unique product for your brand. In addition, while you have less control over the manufacturing process, you still have a lot of control over how the product is presented to your customers.
Another advantage of white label products is that the minimum order quantities are usually lower than if you were to manufacture the product yourself. This is because the white label manufacturer already has the product in production and doesn’t have to set up a new production line for your small order.
So, if you’re just starting and don’t need many products, white label products can be a great option. For example, let's say you want to start selling your own line of cosmetics. You could white label lipstick from an existing manufacturer. You would then have your own branded lipstick without worrying about the minimum order quantity or setting up a production line.
Finally, when you white label products, you can be assured of better quality control than if you were to manufacture the product yourself. This is because the white label manufacturer will likely have a better quality control process than you would if you were starting from scratch.
In addition, the white label manufacturer will usually have a team of quality control experts who can ensure that the product meets your standards since the company is likely doing white labels for multiple companies.
If you’re looking for a cost-effective, fast, and flexible way to get a product to market, white label products could be the right solution for you. You can choose the product you want to white label, control the branding and marketing, and be assured of reasonable quality control. So, if you’re considering starting your own business, look into white label products.